A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
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  Editorial  
 

The post-quota dairy sector Price volatility will hasten
the demise of farms, says momagri



momagri


Article published in Terre-net Média



The Movement for a World Agricultural Organization was actively involved in the September 24, 2013 conference on the future of milk production after the elimination of quotas. We are publishing below the Movement’s conclusions of the conference.


“European Commissioner for Agriculture Dacian Ciolos is convinced that the current market management system is inadequate to deal with a price collapse.

Most participants to the conference on the 2015 post-quota milk production now acknowledge that the upward and downward volatility of agricultural prices is a major challenge impacting agricultural income levels, and thus the future of farming. The second major issue outlined in the conference is the growing gap between production costs and prices.

Confronted to these two key issues, none of the participants to the “Volatility/Regulation” section––with the exception of momagri––provided solutions. Yet the statistics on the demise of dairy farms speak for themselves: Price volatility, combined with the difference between production costs and milk prices, holds a gloomy future for us, with the genuine risk of a break of milk production against demand, with all its implications in terms of imports, dependence and out-sourcing for the agro-food industry.


A lack of strategic thinking

An increasing number of players are conceding that direct subsidies are not a satisfactory response to the issue of price volatility. And momagri underscores the danger of a future drastic cut of direct payments, because of their total disconnection to economic reality.

The conference clearly exposed the lack of strategic thinking to make agriculture a geopolitical asset in the international arena, similarly to the United States, Brazil or China.

In conclusion, even if the conference was disappointing for its shortage in prospective and strategic thinking, we feel we are slowly entering a new era, the era of economic realism.

The post-2013 CAP is overwhelmed by the international environment, and the European Commission agencies seem to be quite helpless against the crises they must deal with in the coming years.”


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Paris, 11 December 2018